Mercedes braces for impact as U.S. tariff threat looms
And that's assuming the tariff increases to just 10 per cent, not 25 per cent as Trump announced.
Mercedes-Benz would lose one percentage point of margin if tariffs on cars exported to the US from Europe were raised from the current 2.5 percent to 10 percent, Chief Financial Officer Harald Wilhelm told investors on February 20 during Capital Markets Day.
However, 10 percent is an optimistic scenario. A few days ago, Donald Trump threatened to impose a 25-per-cent tariff on goods imported into the US, including passenger cars. The president will issue a detailed statement on this matter at the beginning of April.
In 2024, Mercedes' passenger car division's adjusted earnings before interest and taxes (EBIT) were 9 billion USD, providing an 8.1 percent return on sales. Revenues totaled 112 billion USD. If the return on sales had been one percentage point lower, Mercedes would have lost approximately 1 billion USD.
However, Mercedes is aware that the losses could be more significant. Ten percent (in the context of tariffs) is the benchmark value, said the brand's director, Ola Källenius. "We are preparing for all kinds of scenarios."
Read also:
